Vacation Plan. Marathon Petroleum Vacation Plan
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- Paul Hampton
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1 Marathon Petroleum Vacation Plan Effective January 1, 2017
2 Table of Contents I. Eligibility... 1 II. Vacation Service... 1 III. Vacation Benefit During the Calendar Year of Hire, Rehire, or Return From Leave... 2 IV. Vacation Benefit Beginning January 1 Following the Calendar Year of Hire, Rehire, or Return From Leave and for Each Calendar Year of Employment Thereafter... 4 V. General Provisions... 5 VI. Vacation in Connection With Transfers... 7 VII. Vacation in Connection With Employment Type Change... 7 VIII. Vacation in Connection With International Assignments... 8 IX. Vacation in Connection With Absence... 9 X. Vacation in Connection With Termination of Employment XI. Participation by Associated Companies and Organizations XII. Modification and Termination XIII. Further Information Appendix A Relevant Experience Vacation Enhancement Appendix B Vacation Benefit Examples Appendix C Employees Hired on the First Working Day in January Appendix D Examples of Vacation Carry Over... 19
3 I. Eligibility A. An employee working on a Regular Full-time or Regular Part-time basis is eligible for a vacation benefit, except as provided below. For purposes of the Marathon Petroleum Vacation Plan ( Vacation Plan ): 1. Regular Full-time means an employee has a normal work schedule of at least 40 hours per week or at least 80 hours on a bi-weekly basis. 2. Regular Part-time means an employee is a non-supervisory employee who is employed to work on a part-time basis (minimum 20 hours but less than 35 hours per week) and not on a time, special job completion, or call when needed basis. B. The following employees are excluded from receiving a benefit under this Vacation Plan: 1. An employee working on a regular Full-time or regular Part-time basis who is a member of an employee group for which another vacation plan has been established. 2. A Casual employee, leased employee, independent contractor, and any other employee not designated as a Regular employee. 3. Marine Transportation Boat Employees. C. An employee who meets the eligibility requirements of this section is eligible for a vacation benefit in the year of hire and as employment continues as described herein. II. Vacation Service For purposes of the Vacation Plan, Vacation Service is established for all regular employees and is used for purposes of determining an employee s annual vacation benefit. Vacation Service reflects the total years, months, and days recognized for vacation purposes and is applied to one of the vacation schedules, as provided in Sections III and IV. Vacation Service is determined as follows: A. For a new hire without Relevant Experience Vacation Enhancement: Vacation Service is the same as Accredited Service under the Marathon Petroleum Employee Service Plan. B. For a new hire who is eligible for Relevant Experience Vacation Enhancement, as defined in Appendix A: Prior relevant work experience is recognized for purposes of determining Vacation Service. Vacation Service following hire will be based on such Relevant Experience plus what will be the employee s Accredited Service in a given calendar year under the Marathon Petroleum Employee Service Plan. Note: Accredited Service under the Marathon Petroleum Employee Service Plan is not adjusted to reflect Relevant Experience. 1
4 C. For an employee who is rehired ( Rehired Employee ) and an employee returning to work from an approved leave of absence ( Rehired Leave Employee ): Vacation Service prior to rehire or prior to leave is recognized upon being rehired or upon returning to work from leave. 1. A Rehired Employee is an employee who previously worked for the Company, as defined in Section XI. 2. A Rehired Leave Employee is an employee who returns to work from a Personal Leave or an Educational Leave. For information regarding vacation in connection with other leaves, see Section IX. Once Vacation Service is established, a Vacation Service Date is calculated by applying the applicable amount of Vacation Service to an employee s hire or rehire date. III. Vacation Benefit During the Calendar Year of Hire, Rehire, or Return From Leave In the calendar year of hire, rehire, or return from an approved leave, an employee becomes immediately eligible for a pro-rated vacation benefit in accordance with the following provisions. A. Vacation Eligibility 1. New employees: A new employee is eligible for a pro-rated vacation benefit and becomes immediately eligible for a vacation benefit on the first date of employment. This vacation benefit can be used any time (with supervisor approval) during the calendar year in which the employee is hired. However, if a new hire previously worked for a non-participating Controlled Group member and terminated employment from that employer in the same calendar year in which they are hired by the Company, the employee will not be eligible for a vacation benefit under this Vacation Plan until January 1 following the year of hire if they received equivalent pay for unused vacation at the time of termination. 2. Rehired Employees: A Rehired Employee is eligible for a pro-rated vacation benefit and becomes immediately eligible for a vacation benefit on the first date of re-employment, provided they are not rehired in the same calendar year in which they terminated employment either from the Company or from any non-participating Controlled Group member. A Rehired Employee is not entitled to a vacation benefit in the year of rehire if the employee has already received equivalent pay for a vacation benefit for that year; in this case, they will not be eligible for a vacation benefit under this Vacation Plan until January 1 of the year following the date of rehire. 3. Rehired Leave Employees: A Rehired Leave Employee who returns to work in a calendar year other than the calendar year in which the leave commenced is eligible for a pro-rated vacation benefit and becomes immediately eligible for this vacation benefit after returning to work for one full day. Controlled Group means any entity or organization required to be aggregated with the Company pursuant to Code Section 414(b), (c), (m), (n), or (o). Within this Plan document, the term Controlled Group refers to the Controlled Group to which the Company belongs, as in effect from time to time. 2
5 B. Vacation Benefit The amount of Vacation Benefit during the calendar year of hire, rehire, or return from an approved leave is determined in accordance with Schedule A or Schedule B, as provided below. (Refer to Appendix B for examples of employees hired under each Schedule.) 1. SCHEDULE A Applies to New Hires without Relevant Experience Vacation Enhancement Schedule A includes the vacation benefit for a new hire who is not eligible for Relevant Experience Vacation Enhancement, as described in Appendix A, and who is not a rehire or an employee returning from an approved leave of absence. SCHEDULE A Vacation for New Hires without Relevant Experience Vacation Enhancement Hired Anytime During the Month of: January February March April May June July August September October November December Vacation Benefit:* 100% of two weeks 100% of two weeks 100% of two weeks 90% of two weeks 80% of two weeks 70% of two weeks 60% of two weeks 50% of two weeks 40% of two weeks 30% of two weeks 20% of two weeks 10% of two weeks * Pro-rated based on the normal scheduled hours for the employee s average work week, as provided in Section V. 3
6 2. SCHEDULE B Applies to New Hires with Relevant Experience Vacation Enhancement, Rehired Employees, and Rehired Leave Employees Schedule B includes the vacation benefit for a new hire who is eligible for Relevant Experience Vacation Enhancement, as described in Appendix A, for a Rehired Employee, and for a Rehired Leave Employee. Schedule B also applies to a Marine Transportation Boat Crew employee who transfers to an onshore position. SCHEDULE B Vacation for New Hires with Relevant Experience Vacation Enhancement, Rehired Employees, Rehired Leave Employees, and Marine Boat Crew Employees who Transfer to Onshore Positions Hired Anytime During the Month of: January February March April May June July August September October November December Vacation Benefit:* 100% of Normal Vacation Benefit 100% of Normal Vacation Benefit 100% of Normal Vacation Benefit 90% of Normal Vacation Benefit 80% of Normal Vacation Benefit 70% of Normal Vacation Benefit 60% of Normal Vacation Benefit 50% of Normal Vacation Benefit 40% of Normal Vacation Benefit 30% of Normal Vacation Benefit 20% of Normal Vacation Benefit 10% of Normal Vacation Benefit * Pro-rated based on the normal scheduled hours for the employee s average work week, as provided in Section V, and the Normal Vacation Benefit Schedule as provided below. IV. Vacation Benefit Beginning January 1 Following the Calendar Year of Hire, Rehire, or Return From Leave and for Each Calendar Year of Employment Thereafter Beginning with the calendar year following hire, rehire, or return from an approved leave, an employee is eligible for an annual vacation benefit under the Normal Vacation Benefit Schedule in accordance with the following provisions. A. Vacation Eligibility An employee becomes eligible for their full vacation benefit on January 1 of each calendar year, subject to the provisions provided in Section V. 4
7 B. Vacation Benefit The amount of an employee s annual vacation benefit for a calendar year is determined based on the amount of Vacation Service that will be completed within that calendar year, as follows: Starting With the Calendar Year in Which an Employee Completes: Normal Vacation Benefit Schedule Vacation Benefit:* 1 year of Vacation Service 2 weeks with pay 5 years of Vacation Service 3 weeks with pay 10 years of Vacation Service 4 weeks with pay 20 years of Vacation Service 5 weeks with pay 30 years of Vacation Service 6 weeks with pay * Based on the normal scheduled hours for the employee s average work week, as provided in Section V. Note: An employee who has an original hire date on the first working day in January, as described in Appendix C, will be deemed to complete a year of service on December 31 of each calendar year following the calendar year of original hire. V. General Provisions A. Normal Scheduled Hours All Regular Full-time and Regular Part-time employees are assigned normal scheduled hours in a week. An employee s Annual Vacation Benefit for any calendar year will be based on their normal scheduled hours as of the December 31 prior to that calendar year. For example, a Regular Part-time employee working a 20-hour per week schedule as of December 31, with 15 years of Vacation Service will be eligible for a total of 80 hours vacation (4 weeks x 20 hours per week schedule) in the following calendar year. B. Annual Vacation Benefit An employee who is an active employee on the last day of a calendar year becomes eligible for a vacation benefit for the next calendar year. This includes an employee who: 1. Continues employment into the next calendar year. 2. Terminates employment or dies on their last scheduled working day in a calendar year, or between that day and the end of the calendar year. 3. Retires effective January 1. (For purposes of this Vacation Plan, Retire means the employee is at least age 50 with 10 years of Accredited Service under the Employee Service Plan). 4. Is within the first six months of their Medical Leave, with or without Sick Benefit pay, on the last scheduled working day in a calendar year. 5
8 C. Scheduling Vacations 1. An employee may not waive vacation and draw double pay. 2. Vacations may be scheduled at any time during the calendar year in accordance with applicable organizational, local, and/or collective bargaining agreement requirements or practices, unless stated otherwise in this Vacation Plan. 3. An employee may express preference as to scheduling vacation; this preference will be recognized, where practicable, by the supervisor scheduling or approving vacations. 4. With supervisor approval, vacation may be taken and reported to Payroll in one-hour increments. D. Vacation Carry Over 1. An employee may carry unused vacation from one year to the next, but shall not exceed five days, or its hourly equivalent in a regular work week. Per the vacation schedules in this Vacation Plan, five days equals one week. Any unused vacation in excess of five days, or its hourly equivalent, shall be forfeited. However, due to the nature of their position, Transport Drivers, Tankworkers, and Rail Attendants may receive pay in lieu of less than ½ day of unused vacation that is in excess of the maximum allowed carry over. In any given calendar year, an employee s total vacation benefit shall not exceed the normal vacation benefit for that year plus up to five carry over days or its hourly equivalent. See Appendix D for examples. 2. If an employee transfers from Regular Full-time to Regular Part-time or Regular Part-time to Regular Full-time employment, carry over days transfer to the following calendar year according to their employment type as of December 31 immediately prior to the year in which the carry over days will be applied. 3. For information about vacation carry over while on a leave of absence, refer to Section IX. E. Pay Treatment 1. Vacation pay is computed at an employee s base rate or rates, regardless of whether paid on an hourly or monthly basis. 2. Vacation pay shall include contributions to the Thrift Plan s Pre-Tax account, contributions made under the 125 Plan, and contributions to the Health Care Flexible Spending Account. 3. Vacation pay does not include any premium pay such as shift differential, overtime, 7th day pay, or call-in/call-out pay. 4. Vacation pay can include certain allowances to which an employee is entitled such as temporary hardship, international premium and cost-of-living. F. Holiday When an observed holiday falls on the regularly scheduled working day of an employee who is on vacation, the employee will receive holiday pay and vacation will not be applied for that day. 6
9 G. Illness or Injury During Vacation If an illness or injury occurs when an employee is on vacation, the employee will be paid as though the illness or injury began on the day scheduled to return to work from vacation. An employee cannot request to apply their Sick Benefit pay in place of their vacation benefit when an illness or injury occurs during a scheduled vacation. VI. Vacation in Connection With Transfers A. Transferring Among Participating Companies An employee who transfers employment among participating companies as specified in Section XI is not impacted for vacation purposes and will remain a participant in the Plan with the same amount of vacation service in force at the time of transfer. B. Transferring from a Non-Participating Controlled Group Member An employee who transfers from a non-participating Controlled Group member will receive service for vacation purposes. This includes Speedway LLC, Speedway Pre-paid Card LLC, and Mark West Logistics Services LLC. During the calendar year in which the transfer occurs, the amount of vacation benefit for that year will be based on the vacation schedule of the former employer in coordination with any Relevant Experience Vacation Enhancement for Transferred Employees, as stated in Appendix A. However, an employee who transfers to the Company on January 1 is eligible for a vacation benefit under this Vacation Plan as if the employee had been on the Company s payroll on December 31 of the previous year. VII. Vacation in Connection With Employment Type Change A. From Casual to Regular After an employee s employment type changes from Casual to Regular, the employee incurring such a change is immediately eligible for a vacation benefit under Schedule A or B as a new hire, as provided in Section III. The employee then becomes eligible for the Normal Vacation Benefit Schedule, as provided in Section IV, on the January 1 immediately following the date of the employment type change from Casual to Regular. B. From Regular to Casual Unused vacation for a given calendar year is paid to an employee who changes employment type from Regular to Casual. C. From Regular Full-time to Regular Part-time/Regular Part-time to Regular Full-time An employee s vacation benefit is not adjusted in the calendar year of a change in employment type from Regular Full-time to Regular Part-time. If the employee had five remaining days at eight hours per day, they would still be eligible for 40 hours of vacation. 7
10 This treatment of vacation also applies in the calendar year of a change in employment type from Regular Part-time to Regular Full-time. If in the above example, the employee had five days remaining at four hours per day (based on the Regular Part-time schedule), they would be eligible for 20 hours of vacation in the calendar year of the change from Regular Part-time to Regular Full-time. VIII. Vacation in Connection With International Assignments A. U.S. Expatriates 1. In the calendar year of transfer, a U.S. expatriate employee continues to be eligible for any vacation benefit under this Vacation Plan that has not already been taken. 2. Effective the first January 1 following the commencement of a U.S. expatriate s international assignment, a U.S. expatriate is eligible for a vacation benefit, as follows: a) An employee with less than 10 years of Vacation Service: four weeks of vacation benefit; b) An employee with 10 or more years of Vacation Service: according to the Normal Vacation Schedule under this Vacation Plan. 3. In the calendar year of reassignment to the United States, a U.S. expatriate employee shall continue to be eligible for any international vacation benefit not already taken. B. Reclassified Employees Following the year of reclassification to the United States payroll, a reclassified employee is eligible for benefits under the Vacation Plan, as provided herein. C. Temporary International Assignment An employee on a temporary international assignment will continue to be provided a vacation benefit as specified in this Vacation Plan. Any vacation benefit for which an employee is eligible should be scheduled prior to the assignment or subsequent to the completion of assignment. However, if it is not possible to schedule vacation prior to departure to the new assignment or subsequent to the completion of the assignment, an employee scheduled for a long-term assignment may, subject to the approval of the local manager, take vacation during the period of assignment. D. Rotational International Assignment 1. Upon commencement of a Rotational International Assignment an employee will not receive payment in lieu of unused vacation and, thereby, remain a participant in the Vacation Plan. 2. An employee on a Rotational International Assignment at the end of any calendar year, who has unused vacation remaining, will have up to five days, or its hourly equivalent, carried into the next calendar year per the carry over provisions of the Vacation Plan. Any unused vacation in excess of five days, or its hourly equivalent, shall be forfeited. 3. An employee who concludes a Rotational International Assignment (which includes an employee who retires or terminates employment) in a year other than the year the assignment commenced will have a prorated vacation benefit (including carry over vacation) as described for Rehired Employees in Schedule B of this Vacation Plan. 8
11 4. An employee who commences and concludes a Rotational International Assignment within the same calendar year will not have a vacation benefit adjusted (no pro-ration will occur). IX. Vacation in Connection With Absence A. Medical Leave 1. The period of leave is counted toward service for vacation purposes. 2. An employee may request to substitute vacation benefits in place of Sick Benefits, as provided under the Marathon Petroleum Sick Benefit Plan. 3. Vacation taken during a Medical Leave does not alter the effective date of the leave. 4. An employee who returns to work for one full day in the same calendar year in which the leave commences will be eligible for any unused vacation upon their return to work from the leave. 5. If an employee is not expected to return to work in the same calendar year in which the leave commences, Payroll will automatically schedule unused vacation in excess of five days, or its hourly equivalent, at year-end. 6. Unused vacation of five days or less, or its hourly equivalent, will be carried over to the next calendar year. 7. An employee who is within the first six months of a Medical Leave on December 31 is eligible for a vacation benefit in the following calendar year. 8. An employee on a Medical Leave for longer than six months is not eligible for a vacation benefit in the following year unless the employee returns to work for one full day in that calendar year. B. Long Term Disability ( LTD ) 1. An employee receiving benefits under the Marathon Petroleum Long Term Disability Plan has no right to vacation, or equivalent pay for vacation, for any year following the calendar year in which the LTD benefit commences unless the employee returns to active employment for one full day. C. Family Leave An employee on an approved Family Leave may request to use any or all unused vacation while on leave. If vacation is requested while on a Family Leave, the benefit runs concurrent with the leave and does not extend the leave. Note: An employee on an unpaid Family Leave must contact the leave administrator or their Human Resources Consultant to inform them of their request to use vacation. Payroll will be notified of the request and all applicable deductions will be held from any vacation pay that is received while on an unpaid Family Leave. 9
12 1. Family Leave of 12 workweeks or less a. The period of leave is counted toward service for vacation purposes. b. An employee who returns to work for one full day in the same calendar year in which the leave commences will be eligible for any unused vacation upon their return to work from leave. c. Whereby a return to work and use of the entire vacation benefit for a given year is not feasible, unused vacation in excess of five days, or its hourly equivalent, will be scheduled at year-end. d. Unused vacation of five days or less, or its hourly equivalent, will be carried over to the next calendar year. e. An employee on a Family Leave of 12 workweeks or less on the last day of a calendar year (December 31) must return to work for one full day in the following calendar year to be eligible for a vacation benefit for that year. 2. Wounded Warrior Family Leave of 26 workweeks or less a. The period of leave is counted toward service for vacation purposes. b. An employee who returns to work for one full day in the same calendar year in which the leave commences will be eligible for any unused vacation upon their return to work from leave. c. Whereby a return to work and use of the entire vacation benefit for a given year is not feasible, unused vacation in excess of five days, or its hourly equivalent, will be scheduled at year-end. d. Unused vacation of five days or less, or its hourly equivalent, will be carried over to the next calendar year. e. An employee on a Wounded Warrior Family Leave of 26 workweeks or less on the last day of a calendar year (December 31) must return to work for one full day in the following calendar year to be eligible for a vacation benefit for that year. D. Military Leave 1. The period of leave is counted toward service for vacation purposes. 2. An employee who returns to work for one full day in the same calendar year in which the leave commences will be eligible for any unused vacation upon their return to work as long as they did not already receive a vacation payout at the time the leave commenced. 3. An employee who is not expected to return to work in the same calendar year in which the leave commences will have unused vacation in excess of five days, or its hourly equivalent, paid when the leave commences. Unused vacation of five days or less, or its hourly equivalent, will be carried over to the next calendar year. 4. An employee on Military Leave on the last day of a calendar year (December 31) must return to work for one full day in the following calendar year to be eligible for a vacation benefit for that year. 10
13 E. Personal Leave 1. The period of leave is not counted toward service for vacation purposes; an employee s Vacation Service will be adjusted accordingly upon returning to work. 2. An employee who returns to work for one full day in the same calendar year in which the leave commences will be eligible for any unused vacation upon their return to work from leave. 3. Whereby a return to work and use of all the vacation benefit for a given year is not feasible, unused vacation will be paid in full at year-end. 4. Carry over of unused vacation is not permitted. 5. An employee on a Personal Leave on the last day of a calendar year (December 31) must return to work for one full day in the following calendar year to be eligible for a vacation benefit for that year. Upon return to work, the employee will be considered a Rehired Leave Employee and will be eligible for a vacation benefit, as provided in Section III. F. Educational Leave 1. The period of leave is not counted toward service for vacation purposes; an employee s Vacation Service will be adjusted accordingly upon returning to work. 2. Carry over of unused vacation is not permitted. 3. Unused vacation will be paid in full when the leave commences. 4. An employee who returns to work in the same calendar year in which the leave commences will not be eligible for a vacation benefit until January 1 of the calendar year immediately following the date they return to work from leave. 5. An employee on an Educational Leave on the last day of a calendar year (December 31) must return to work for one full day in the following calendar year to be eligible for a vacation benefit for that year. Upon return to work, the employee will be considered a Rehired Leave Employee and will be eligible for a vacation benefit as provided in Section III. G. Layoff 1. If an employee is on layoff and off the payroll for more than 30 consecutive days, the time absent is not counted for vacation purposes; an employee s Vacation Service will be adjusted accordingly upon returning to work. 2. Carry over of unused vacation is not permitted. 3. Unused vacation will be paid in full when the layoff commences. 4. An employee who returns to work from layoff in the same calendar year in which the layoff commences will not be eligible for a vacation benefit until January 1 of the calendar year immediately following the date they return to work; there will be no vacation benefit for the remainder of the year. 11
14 5. An employee on layoff on the last day of a calendar year (December 31) must return to work for one full day in the following calendar year to be eligible for a vacation benefit for that year. Upon return to work, the employee will be considered a Rehired Employee and will be eligible for a vacation benefit as provided in Section III, based on the adjusted Vacation Service and applied to the pro-rated schedule for the month in which the employee returns to work. H. All Other Absences 1. For absences other than those described in A through G above, for an employee who has been absent and off the payroll for 30 consecutive days, the time absent is not counted for vacation purposes. X. Vacation in Connection With Termination of Employment A. Termination at Year-End An employee whose employment terminates for reasons other than retirement on the last scheduled working day in a calendar year, or between that day and the end of the calendar year, will be paid an amount equivalent to the vacation benefit to which they were entitled and did not take prior to December 31. In addition, an employee is eligible for a vacation benefit for the next calendar year and will receive equivalent pay, which shall be computed at the base rate in effect on the last working day. B. Retirement at Year-End 1. Executive Officers, as defined by the Company, who retire effective January 1, will not be paid for any vacation to which they were entitled and did not take prior to December All other employees who retire effective January 1 will be paid an amount equivalent to the vacation benefit to which they were entitled and did not take prior to December All employees (including Executive Officers, as defined by the Company) become eligible for a vacation benefit for the next calendar year and will receive the equivalent pay, which shall be computed at the base rate in effect on the last working day. C. Retirement or Termination Prior to Year-End An employee whose employment terminates or retirement becomes effective prior to the last scheduled working day in a calendar year will be paid an amount equivalent to any vacation to which the employee was entitled and did not take in that calendar year. D. Termination of Employment in the Year of Hire or Rehire An employee who terminates employment in the same calendar year in which they are hired will be paid an amount equivalent to any unused vacation benefit. 12
15 E. Effective Date of Discharge, Termination, Layoff and Resignation The effective date of separation for Discharge, Termination, Layoff and Resignation is normally the last day an employee has responsibilities pertinent to their occupation. This date should not be moved forward to include unused vacation days or holidays, unless such terminated employee is retirement eligible at the time of involuntary separation due to discharge, termination or layoff. (This does not include or apply to terminations for retirement purposes.) An employee who is rehired within the same year of separation from employment is not entitled to a vacation benefit in the year of rehire if the employee has already received equivalent pay for a vacation benefit for that year. Retirement for purposes of this Vacation Plan means an employee is at least age 50 with 10 years Accredited Service under the Employee Service Plan. XI. Participation by Associated Companies and Organizations Upon specific authorization and subject to such terms and conditions as it may establish, Marathon Petroleum Company LP may permit eligible employees of subsidiaries and affiliated organizations to participate in this Vacation Plan. Currently, these participating companies include, but are not limited to, Marathon Petroleum Company LP, Marathon Petroleum Corporation, Marathon Petroleum Service Company, Marathon Petroleum Logistics Services LLC, Catlettsburg Refining LLC, MW Logistics Services LLC, and Blanchard Refining Company LLC. The term Company and other similar words shall include Marathon Petroleum Company LP and such affiliated organizations. The term employee and other similar words shall include any eligible employee of these companies. XII. Modification and Termination The Company reserves the right to modify or terminate this Vacation Plan, in whole or in part, in such manner as it shall determine, either alone or in conjunction with other plans of the Company. Modification or termination may be made by the Company for any reason. XIII. Further Information Payroll coordinates the administration of the Vacation Plan. 13
16 Appendix A Relevant Experience Vacation Enhancement A new, rehired, and transferred employee may have such prior relevant industry/job-related work experience ( Relevant Experience ) recognized as Vacation Service under the Vacation Plan, as follows: A. New Hires A Regular Full-time exempt employee with relevant industry/job-related work experience who is hired by the Company will have such Relevant Experience recognized as Vacation Service under the Vacation Plan. The employee s Vacation Service Date will be adjusted accordingly upon hire. B. Rehires A Regular Full-time exempt employee with relevant industry/job-related work experience who is rehired will have such Relevant Experience recognized as Vacation Service under the Vacation Plan, provided it was not previously recognized. C. Part-time to Full-time An employee whose employment type changes from Regular Part-time to Regular Full-time exempt on or after October 1, 2007, and who was hired or rehired on or after January 1, 1998, and has not had Vacation Service previously adjusted to recognize prior relevant industry/job-related work experience, will have such prior Relevant Experience recognized for purposes of determining Vacation Service. The employee s Vacation Service Date will be adjusted accordingly. Note: This applies only to a Part-time employee who would have otherwise been classified as exempt Full-time. (i.e., professional positions) A vacation benefit prior to the change in employment type will be maintained for the remainder of the calendar year of the change with any adjusted amount of vacation benefit applied to the new employment schedule. On the January 1 immediately following the change from Regular Part-time to Regular Full-time exempt employment type, an employee is eligible for a vacation benefit based on the normal scheduled hours as of the December 31 of the year of the change. The employee will maintain the adjusted Vacation Service Date, if applicable, even if the employee later returns to Part-time employment. D. Transferred Employees An employee who transfers to the Company from a non-participating Controlled Group member is not considered a hire or rehire, so prior relevant industry/job-related work experience will not be applied at the time of transfer. However, any adjustment to an employee s Vacation Service that was previously applied will remain in effect should that employee transfer to another member within the Controlled Group. 14
17 E. Definitions Relevant industry/job-related work experience is defined as work experience that is deemed to be directly relevant, as determined by the hiring organization, while: 1. Employed by a non-participating employer as a regular, full-time exempt employee after receipt of a relevant degree from an accredited college or university; or while 2. Employed by a non-participating employer as a non-degreed candidate whose experience is directly relevant to the hired position; or while 3. Employed by the Company in a position whose service was not previously recognized for vacation purposes; or while 4. Employed by a non-participating Controlled Group member whose experience is directly relevant to the hired position. F. An individual must be made aware that they are eligible for a Relevant Experience Vacation Enhancement, if applicable, prior to employment. Generally, this information should be communicated at the time a job offer is extended. G. A Relevant Experience Vacation Enhancement is a one-time adjustment which is applied upon an employee s initial eligibility for a vacation benefit. Relevant experience will not be granted as Vacation Service more than once in establishing an employee s Vacation Service Date. H. A one-time adjustment to Vacation Service has been made for Regular Full-time exempt employees who were hired or rehired during the period from January 1, 1998, through December 31, This one-time adjustment affected employees who satisfied the conditions established in paragraph D of this Appendix A and who did not have their vacation benefit previously adjusted based on Critical Skill status. 15
18 Appendix B Vacation Benefit Examples A. Employees Hired Under Schedule A Vacation for New Hires Without Relevant Experience Vacation Enhancement. 1. An Administrative Assistant is hired on April 1. The vacation benefit in which the employee becomes immediately eligible is 2 weeks, pro-rated at 90%, or 9 days. This employee becomes eligible for a vacation benefit of 2 weeks, or 10 days, under the Normal Vacation Benefit Schedule on January 1 of the calendar year immediately following the year of hire. 2. A college graduate with no experience is hired as an Accountant on September 8. The vacation benefit in which the employee becomes immediately eligible is 2 weeks, pro-rated at 40%, or 4 days. This employee becomes immediately eligible for a vacation benefit of 2 weeks, or 10 days, under the Normal Vacation Benefit Schedule on January 1 of the calendar year immediately following the year of hire. B. Employees Hired Under Schedule B Vacation For New Hires With Relevant Experience Vacation Enhancement, Rehired Employees, and Rehired Leave Employees. 1. An employee is hired on January 5 into a Regular Full-time exempt position. The employee has 9 years prior relevant work experience. The vacation benefit in which the employee becomes immediately eligible is 3 weeks, pro-rated at 100%, or 15 days. This employee becomes eligible for a vacation benefit of 4 weeks, or 20 days, under the Normal Vacation Benefit Schedule on January 1 of the calendar year immediately following the year of hire. 2. An employee is rehired on June 23, following a Personal Leave of 18 months. The employee has 14 years of Vacation Service. The vacation benefit in which the employee becomes immediately eligible is 4 weeks, pro-rated at 70%, or 14 days. This employee becomes eligible for a vacation benefit of 4 weeks, or 20 days, under the Normal Vacation Benefit Schedule on January 1 of the calendar year immediately following the year of rehire. 3. An employee is rehired on November 1, following an Educational Leave of 7 months. When the leave commenced, the employee was paid for unused vacation. Since the employee was rehired in the same year the leave commenced and received a vacation payout for their unused vacation benefit upon commencement of their leave, the employee has no vacation benefit for the remainder of the calendar year of rehire. This employee becomes eligible for a vacation benefit on January 1, immediately following the year of rehire, based on the Normal Vacation Benefit Schedule. 16
19 C. Vacation For New Hires who Previously Worked for a Non-Participating Controlled Group Member or Employees who Transfer from a Non-Participating Controlled Group Member 1. An employee who previously worked for Speedway LLC as a Customer Service Representative is hired by the Company as an Accountant on April 1. Because Speedway is a non-participating Controlled Group member, the employee is considered a new hire and is eligible for a vacation benefit under Schedule A. This employee is immediately eligible for 2 weeks, pro-rated at 90%, or 9 days and then becomes eligible for a vacation benefit of 2 weeks, or 10 days, under the Normal Vacation Benefit Schedule on January 1 of the calendar year immediately following the year of hire. 2. A current employee in the position of Recruiter at Speedway LLC transfers to the Company as a Recruiter on July 1. For the remainder of the calendar year of transfer, the amount of vacation benefit is based on Speedway s vacation schedule. On January 1 following the year of transfer, the employee s Vacation Service will be established and will include the prior Speedway Service. A Vacation Service Date will be calculated to determine the vacation benefit the employee is eligible for under this Vacation Plan for that year. 17
20 Appendix C Employees Hired on the First Working Day in January For any employee who had a First Work Day designation prior to January 1, 2006, such designation will continue as follows: A. An employee hired on the first working day in January will move to each higher level of Annual Vacation eligibility in the Normal Vacation Schedule one calendar year in advance of others with similar vacation service since a year of service for vacation purposes for this group is deemed to be completed on December 31, rather than the calendar year of the anniversary date. For any other employee hired or rehired on or after January 1, 2006, the First Work Day provision under the Vacation Plan is not available. 18
21 Appendix D Examples of Vacation Carry Over Five days, or its hourly equivalent, equates to the total number of normal scheduled hours that a Regular employee is assigned on a weekly basis. In effect, the value of one day of vacation on December 31, of each year, is translated into the hourly equivalent for determining the value of the 5 days that can be carried over to the next calendar year. For each day of vacation taken, however, the number of hours scheduled for the day of vacation is deducted from total eligible vacation hours. For example, Employee A has 40 normal scheduled hours in a week and works 5 days during the week at 8 hours per day. Therefore, each day of vacation has 8 hours charged against total eligible vacation hours. A is entitled to carry up to the equivalent of 40 hours, into the next calendar year. Employee B has 48 normal scheduled hours in a week and works 4 days during the week at 12 hours per day. Therefore, each day of vacation has 12 hours charged against total eligible vacation hours. B is entitled to carry up to the equivalent of 48 hours, into the next calendar year. Employee C has 30 normal scheduled hours in a week and works 4 days during the week at 7.5 hours per day. Therefore, each day of vacation has 7.5 hours charged against total eligible vacation hours. C is entitled to carry up to the equivalent of 30 hours, into the next calendar year. Employee D has 28 normal scheduled hours in a week and during the week works 3 days at 8 hours per day and 1 day at 4 hours per day. Therefore, each day of vacation has the hours scheduled for that day charged against vacation. D is entitled to carry up to the equivalent of 28 hours into the next calendar year. 19
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